When it comes to making money online, sometimes the best strategy is not to overthink things. Why reinvent the wheel when everyone uses it, everyone buys it and everyone is making money on it? The same philosophy can be applied with finding the best passive income stream ideas to help you make money with your home business.
You don’t always have to go too far outside of the box—you can simply replicate the success of others by using the best passive income earners that are out there. There’s enough of the pie for everyone to eat, even with the market being saturated. The only thing to keep in mind is that you should stick to the plan.
Best Passive Income Stream Ideas—Selling Products Online
Most people think that the only way to make money online is by selling digital products. While it’s true that a large portion of online sales come from digital products, an even larger portion still comes from the physical products that people buy online. Everything from clothes to exercise machines to cars to children’s toys—the online marketplace has allowed thousands of entrepreneurs to forgo the common brick and mortar structures and compete with big box stores.
Likewise, it also allows for thousands of home entrepreneurs like yourself to earn money passively by selling products online in a number of different ways (e.g. personal items, wholesale items, dropshipping, etc.). Here are some of the avenues you should look towards:
- eBay is already widely known as the most popular auction site out there, but you can set up eBay stores as well as have “Buy it Now” prices. This gives you a few different options for selling and reselling for profit. You pay a nominal listing fee and then a small percentage of the selling price to eBay, but you get worldwide exposure and listed in one of the most powerful sales search engines in the world. Buy cheap and sell expensive, invest in collectibles, buy things on sale or with cashback coupons and then resell them at full value for a profit—the opportunities are vast here.
- Craigslist isn’t as pretty or sophisticated as eBay but you can list your products for free and then repost or ads as they get older. It also has a pretty powerful search engine and is has always had a bit of a cult following.
Best Passive Income Stream Ideas—Selling Digital Products
As we mentioned above, a lot of digital goods are for sale on the web, but not just eBooks or software programs. You can broaden your horizon with your digital sales by looking into these categories:
- Domain names are something that every website needs so there is obviously a market for buying and selling them. Just like in real estate, the price of domain names can go up or down. For example, if you register a domain name and then a company becomes highly profitable and needs to buy it from you, you hold the keys to their success and those keys come at a price. You can also acquire an established business’s domain name and easily rake in thousands of dollars. A site called Flippa is one of the biggest domain name marketplaces out there.
- Digital photos can also be sold online though sites such as iStock Photo, Alamy and Shutterstock. This is a place where you can upload your digital photos to the web and then sell them for rights or royalty fees. This is one of the best passive income streams for those with a great eye for photography.
Best Passive Income Stream Ideas—Membership Sites
Another killer passive income generator is the membership site. Membership sites are simply websites that contain content that is free to view which draws the members in and then requires viewers to pay a fee to access the “members only” material. This restrictive are entices the viewer to join, but only works if the free material is: a.) good enough to make the viewer want more and b.) just enough information that the viewer needs more.
For service-based home businesses, membership sites can be one of the best passive income stream generators around:
- Members can either pay a one-time fee to gain access to the restricted material or they can pay a recurring monthly or yearly fee. For the former, you can simply create the content and let the passive income roll in; for the latter, you will have to keep updating the material so that your members keep re-upping their membership. Still, you can outsource this and still keep it relatively passive.
- You can also make the membership fee a lot cheaper than buying the product, making it seem more affordable and economical to join.
- Membership sites also allow you to launch your site at a MVP (minimum viable product), meaning you can get started while you only have a small part of the content or product actually created. Then, as time goes on, you can create more, in essence meaning you are getting paid in advance to create your content. This also has the added benefit of allowing you to get customer feedback as you create, tailoring your content for your clients, resulting in happier members who constantly re-up their membership.
Best Passive Income Stream Ideas—Software
Finally, we turn to one of the best passive income streams of all time—software. Because the entire internet runs on software and that software is ever-expanding, there is a constant need for it. As a passive income stream, it is one of the most lucrative generators out there. But because it is often viewed as a bit too “techy,” many people tend to stay away.
On the contrary, software is such a great passive income investment because there are so many programmers out there. All you need to do is outsource the work to someone with programming skills and then you make all of the money selling the product. After all, the licensing and sales is where all the money is really made, not in the actual programming. That’s just labor. Here are two ideas to get you started down the right path:
- Subscription based software is one of the best passive income generators when it comes to web-based software. This software can be a simple fix to a larger problem so it doesn’t even need to be that intense.
- Applications are all the rage right now. Release your apps on Google Play or the Apple App store and watch the passive income roll in. Of course, you’ll likely have to release the app for free or for cheap at first, but you can use advertising, premium services and sponsors to generate income. But if your app is that good, you definitely should charge.
Finding the Best Passive Income Generators for You
When it’s all said and done, the key to having the best passive income stream is having multiple passive income streams. Just as smart investors diversify their portfolios, smart passive income generators diversify their streams. This way if one ever dries up or stops flowing, you’re not going to go hungry.
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